Dollar Strengthens Due to Moody's Report | Learn Forex | GoLearnForex.com

Dollar Strengthens Due to Moody's Report

Written by article default Wednesday, 06 July 2011 13:39

USD Dollar (USD) – In forex trading, the Dollar strengthened against the other major currencies as Moody’s Investors service cut Portugal’s long-term government bond ratings to Ba2, causing the markets to be mixed and the Dollar to become more attractive as a safe haven asset. Wall Street closed mixed as the NASDAQ advanced by 0.35% and the Dow Jones weakened by 0.10%. Crude oil rose by 2.1%, the highest price in three weeks, and closed at $96.89 a barrel. Gold (XAU) increased by 2.0%, and closed at $1,512.70 an ounce. Today, the ISM Non-Manufacturing PMI is expected to come out at 54.00 vs. 54.60 prior.

Euro (EUR) – The Euro fell for the first time in seven days against the Dollar after Moody’s cut Portugal’s government bond rating to junk and said that banks rolling over Greek bonds may incur impairment charges. The EUR/USD’s momentum is bearish as long as the Euro is trading below the 1.4520 level and the next support level on the one hour chart is located at 1.4380. Overall, EUR/USD traded with a low of 1.4397 and with a high of 1.4542. Today, German Factory Orders are expected to decrease from 2.80% to -0.50%.

EUR/USD – Last: 1.4453

British Pound (GBP) – The Pound strengthened against the Euro and fluctuated against the Dollar after a report showed a measure of U.K. service industries exceeded economists’ forecasts in June. The Services PMI came out better than its forecast of 53.6, resulting in an outcome of 53.9. As long as the GBP/USD is trading above 1.6000, the negative momentum of the Pound is on hold and could rise to 1.6150, or even more. Overall, GBP/USD traded with a low of 1.5990 and with a high of 1.6127. No economic data is expected today.

GBP/USD - Last: 1.6085

Japanese Yen (JPY) –The Yen declined versus the Dollar, as a strong Dollar was seen during the US session as a result of Moody’s announcement, which caused the Yen to weaken against the other major currencies. The USD/JPY is still struggling with 81.00-81.20 levels, and only if the pair breaks the 81.30 level, will the Dollar be attractive. Overall, USD/JPY traded with a low of 80.78 and with a high of 81.18. No major data is expected today.

USD/JPY-Last: 80.86

Canadian dollar (CAD) – The Canadian Dollar weakened versus the US Dollar due to Moody’s report, causing the market to be unstable and the dollar to become stronger as a safety investment. As long as the pair is trading below 0.9700 levels, the US Dollar remains on a negative trend and a short position is preferred. The next support level on the daily chart is located at the 0.9580 level. Overall, USD/CAD traded with a low of 0.9595 and with a high of 0.9642. Today, Building Permits are expected to come out at 5.00%, instead of -21.10% prior.

USD/CAD - Last: 0.9618